OpenAI will terminate Cursor’s access to its AI models by November 12, 2026, following SpaceX’s $60 billion acquisition of the coding startup. The decision marks a concrete escalation in the long-standing feud between OpenAI CEO Sam Altman and Elon Musk, who co-founded OpenAI in 2015 before leaving in 2018.
OpenAI stated the move was necessary because it cannot be confident that SpaceX will use its technology within the terms of service, citing past contract violations by Musk-owned companies. Cursor, which previously relied on OpenAI models for 5% of its user traffic, confirmed it is in discussions with OpenAI to resolve the issue. Cursor co-founder Michael Truell, now a SpaceX executive, emphasized the company’s long-standing partnership with OpenAI, calling the platform a "neutral infrastructure" for its business.
SpaceX completed the Cursor acquisition on August 14, according to financial filings. The deal provides Cursor with access to SpaceX’s Colossus computing clusters, which aim to scale to the equivalent of 1 million Nvidia H100 chips—a resource Cursor previously identified as critical for training competitive AI models. Analysts have noted that SpaceX’s vertical integration of hardware and software could reduce Cursor’s dependence on rival AI suppliers, including OpenAI.
In response, Musk posted on X that he "couldn’t care less" about OpenAI’s decision, calling Altman and OpenAI President Greg Brockman "untrustworthy" and repeating his claim that they "stole an open source nonprofit." Musk had previously sued OpenAI in 2024, alleging the company betrayed its original nonprofit mission. A federal jury ruled against Musk in early 2025, finding the lawsuit was filed too late.
OpenAI’s decision cited two prior contract violations by Musk-owned companies as justification. The company referenced a 2023 incident where Twitter (now X) allegedly breached its data-sharing agreement with OpenAI, and a 2024 admission by Musk that xAI had used OpenAI’s output to train its Grok model. OpenAI stated it uses "custom contracts" with large partners like SpaceX to ensure compliance, though Cursor’s agreement included a limited window to cancel after the acquisition.
Cursor’s reliance on OpenAI models was limited, serving only 5% of its user traffic, but the partnership spanned years. Truell’s post on X highlighted the company’s trust in OpenAI’s platform, while OpenAI acknowledged the decision was "incredibly tough" due to its commitment to broad developer access. The company confirmed it will not provide future models to Cursor, including its upcoming Astra model, as it winds down the agreement.
The dispute extends beyond Cursor, with Anthropic, a rival AI lab, announcing plans to increase compute support for its Claude models in Cursor, according to reports. This move could mitigate some of the impact on Cursor’s users, though the full implications for the coding tool’s operations remain unclear.
The conflict between Altman and Musk has simmered for years, culminating in a high-profile trial earlier this year. During the proceedings, Musk’s legal team accused Altman of lying, while OpenAI argued Musk sought control of the company. The jury’s ruling against Musk did not resolve the underlying tensions, which now extend into operational and commercial decisions affecting AI infrastructure.